Using the word “fee” vs. words ‘compensation’ and ‘committee’
There are many reasons for making this switch.
As a result of commission litigation, “commission” and “indemnification” have become buzzwords.
Sellers have repeatedly heard through the media that they only need to pay half of the commission. Use the word “fee” Open There are endless possibilities for the seller to choose how to help the buyer – for example, repairing the roof or Provide buyers Interest rates cut.
Buyers are more likely to refuse to pay their own “commission” because they May not be able to afford it, Didn’t have to do this in the past Or just don’t like the idea.
Use of the word “fee” also includes service charges (Service Menu) business model where can buyers select pay their attorney fees Finish Specific transactional tasks such as locating and showing property, Negotiate quotation, and/or Handle transaction issues required to complete the transaction.
The Department of Justice (DOJ) and the Consumer Federation of America (CFA) want our forms to be “consumer-focused,” not “realtor-focused”focused“
new experience value Buyer Broker Representation Agreement provides a possible way to solve this problem. this document Terms used “Broker’s Fee” The entire agreement.
It also mentions how fees are “paid”, i.e. how brokers are “compensated”. In fact, the word “compensation” appears only twice in the agreement:
Charge the seller a broker’s fee:
Credit to buyer at closing. The buyer may choose to negotiate for the seller to pay all or part of the brokerage fee to the buyer at closing through a seller’s credit. At the buyer’s direction, the broker will include this request in the buyer’s offer to purchase the property.
and
Direct Seller Compensation to Broker: Buyer Authorized Broker (experience value) requires the seller to pay the broker all or part of the broker’s fee (experience value), at the end. Any such arrangements will be documented in a separate compensation agreement between the parties Sellers and Brokers (experience value). Buyer Knows Broker (experience value) cannot communicate with the seller without first obtaining permission from the seller’s agent.
Use “terms and/or conditions” instead of “concession”
For decades, most purchase contracts have included a field where agents could write in additional terms or conditions the buyer wanted, such as “repair the roof,” “reduce buyer’s interest rate,” or “include dining room chandelier.” purchase price.
